Commonwealth Business Bank Reports Record Net Income.

LOS ANGELES -- Commonwealth Business Bank (OTCBB:CWBB) today reported its net income for the fourth quarter and the year ended December 31, 2006. Net income for the quarter ended December 31, 2006 grew by $1.84 million to $1.37 million or $0.42 per diluted share over net income of -$474,000, or -$0.19 per diluted share for the comparable period a year ago.

For the year ended December 31, 2006, net income increased by $4.26 million to $1.74 million, or $0.63 per diluted share, compared to -$2.53 million or -$1.10 per diluted share for 2005.

"I am pleased with our performance in 2006. Becoming profitable in less than two full years of operation is an outstanding achievement. Moreover, it is notable that we have not compromised the quality and the risk management to attain growth and profit. I am ebullient with the fact that our infrastructure has become firmer and stronger," commented Wun Hwa (Jack) Choi, President and CEO.

The interest income continues to outpace interest expenses and in the fourth quarter, the 2006 net interest income increased by $303,000, compared to the previous quarter. However, due to a $244,000 higher provision for loan losses associated with a loan growth and $232,000 higher overhead expenses due to the hiring of additional employees, the net income before tax decreased by $27,000. As of September 30, 2006, the Bank fully offset deferred tax assets by a valuation allowance due to an uncertainty of future realization of its deferred tax assets inherent to a denovo bank. After a thorough review of its current financial position and the future projection, the Bank determined that the possibility of a future realization of deferred tax assets was more likely than not. As a result, the Bank reversed its valuation allowance and incurred deferred tax benefits of $1.137 million, which reduced the income tax provision and increased the net income after tax to $1.37 million, or $0.42 per diluted share for the fourth quarter. When adjusted for deferred tax benefits, the Bank's net income for the fourth quarter was $230,000 or $0.07 per diluted shares, compared to $214,000 or $0.08 per diluted shares of the 3rd quarter of 2006. The efficiency ratio improved in the fourth quarter to 68% from 72% of the previous quarter and from 128% of the fourth quarter of 2005. The return on average assets was 2.79% (0.47% adjusted for the deferred tax benefits) for the fourth quarter, compared to 0.50% of the third quarter. The return on average equity was 14.39% (2.42% adjusted), compared to 3.06% of the previous quarter.

In the fourth quarter, total loans grew by 19% to $140.5 million as commercial real estate loans and commercial loans increased by 13% and 34%, respectively. The allowance for loan loss increased by $321,000 to $1.73 million, representing 1.22% of gross loans. The asset quality continues to be strong, and the Bank does not have any delinquent or non-performing loans. The majority of loan growth was funded by growth in deposits of 16% to $162.2 million. The largest growth was in non-interest bearing deposits by 57%. The interest bearing deposit also grew by 11%, mainly in CDs. Total assets increased by 13% during the fourth quarter.

Due to fierce competition in the local market, the cost of funds increased during the fourth quarter but the yield on earning assets continues to improve by a bigger margin. The net interest margin improved to 4.11%, compared to 3.94% of the previous quarter and 3.05% of the fourth quarter of 2005.

In 2006, net interest income was $5.86 million, up 179% from $2.10 million in 2005 and non-interest income was up by 69% to $886,000. Provision for loan losses decreased by 32%, totaling $699,000. As a result, net income improved to $1.74 million from -$2.53 million of the previous year despite a 23% increase in overhead expenses to $5.06 million as the Bank added more employees to support growth and enhance internal control. The efficiency ratio for 2006 improved to 75% from 157% in 2005. The return on average assets and average equity for 2006 were 1.05% and 6.43%, respectively. When adjusting for deferred tax benefits, ROA and ROE were 0.36% and 2.22%, respectively.

The total assets grew by 56% to $203.5 million during 2006, compared to $130.1 million in 2005. The gross loans and deposits increased by 78% and 49%, respectively. Shareholders' equity increased by 89% to $39.2 million after a successful offering of stocks during the 3rd quarter of 2006.

"In 2006, our dedicated team has undertaken many hard tasks. We opened our first new branch, completed a second round offering and hired new CFO. During the process of meeting these challenges, I became more confident of my fellow members of the Bank. Although the intangible value of the strong internal control cannot be shown entirely on the financial report, we are certain that a profit accompanying good internal control will make our institution more valuable in the long run. A harmony between growth and risk management will always be emphasized," said Wun Hwa (Jack) Choi.

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The Bank's Call Reports are available for review or download directly from the FDIC website at www.fdic.gov, or through the link at the Bank's website at www.cwbbank.com.

Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and factors such as: (1) the impact of changes in interest rates, (2) fluctuation in economic conditions, (3) competition in the Company's defined market, (4) the Company's ability to sustain its internal growth rate and to preserve its earning assets quality, and (5) government regulations. Although the Company believes the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct.